Final answer:
Block grants were designed to give states more flexibility in the usage of federal funds, aligning with the new federalism approach that emphasizes state sovereignty and local discretion in policy implementation.
Step-by-step explanation:
Block grants were intended to reform the federal relationships by c) Giving states more flexibility in how they use federal funds. This approach is in line with the philosophy of new federalism that sought to decentralize policy management and restore the prominence of states in governance. Initiated during the Reagan administration, block grants were a shift from the precise earmarking of funds toward allowing states to determine the best use of financial resources based on local needs. The flexibility of block grants, however, has occasionally been undermined by increasing federal control through mandates or stipulations over time.
During Ronald Reagan's presidency, the move toward new federalism was labeled the "devolution revolution," and this led to increases in block grants. Governorships and legislatures gained more autonomy over specific policy implementation, even though later administrations, such as Clinton's and Obama's, also saw shifts in the use of block grants.
The intention behind using block grants was to reduce federal influence over state governments, thereby acknowledging the sovereignty of the states and cutting overall government expenditure. By providing bulk funding with fewer strings attached, block grants were supposed to offer cost-cutting benefits and uphold the sovereignty of states.